AABI I/E Forum Educators’ Response to Panel 1 February 26, 2015 Auburn, AL Introducing Our Panelists • • • • Dr. Paul Craig, MTSU Dr. I. Richmond Nettey, Kent State Dr. Guy Smith, ERAU Dr. Tom Carney, Purdue Panel 1 Industry Speakers and Topics 1. David Sneed, Corporate Planning, Delta Airlines • Airline Business Strategies 2. Gregg Davis, GM-Schedule Optimization, Delta Airlines • Network Operations 3. Kourosh Hadi, Director Airplane Product Development, Boeing • Designing the market “position” of the airplane • Differentiating the airplane to the airline and the passenger Panel 1 Charge • Preparing Aviation Management Graduates for Professional Employment With Airlines & OEMs Background for Panel 1 • Aviation Management graduates seeking employment with airlines and OEMs need a background in marketing, revenue and cost management, finance, logistics, and a number of “soft” skills. • The panel 1 industry experts discussed the entry-level understanding desired of new employees so that they may become productive early in their careers. • Airlines manage business strategies so as to maximize returns from operations and ancillary investments, while minimizing and controlling costs. Background for Panel 1 • OEMs provide a large and increasingly diverse and granular array of equipment options. • B-to-B marketing targets equipment options in ways to attract airline buyers, exploit niche capabilities, emphasize passenger and freight market attractiveness, capture emergent enabling technologies, and address OEM and airline resource limitations. • OEMs also attempt to directly address the “customer’s customer” (passengers) creating unique features to avoid equipment as a commodity. The Panel 1 Charge Panel 1 was targeted for Aviation Management programs to provide familiarity to university faculty & students. • Our first distinguished airline panelist, David Sneed, was charged with describing business strategies, cost and revenue drivers, and asset management. • Mr. Sneed was also asked to discuss methodologies and tools applied to cost and revenue management, long-term planning, and corporate initiatives. The Panel 1 Charge • Our second distinguished airline panelist, Gregg Davis, was asked to describe strategies and tactics applied to managing & optimizing equipment and schedule applications. • This is in recognition that airline finance & logistics skills are required to optimize revenue and cost in managing fleet and asset acquisition, network planning, and managing cost drivers such as labor, fuel costs, weather, and other disruptions. The Panel 1 Charge • Our third presentation of the session was provided by our distinguished OEM panelist, Kourosh Hadi • Mr. Hadi was asked to provide an overview of product development, aircraft sizing and range capability determination, and new technologies adoption to enhance product performance and attractiveness to the airline customer, and the “customer’s customer”. We recognize and thank our Industry Presenters, for their very interesting and informative presentations! Our task today as Educators, is to “complete the dance”: • Review the salient points of what we heard in July • Consider and suggest possible impact of the new information on the Criteria I am honored to call on my Colleagues to present their reviews I/E Forum Panel 1 Response from Educators Airline Business Strategies David Sneed presentation July 2014 Nashville, Tennessee Part 1 – Very helpful for Educators Part 2 – Very helpful for Students Airline Business Strategies, Network Operations and Airline Marketing THURSDAY, 26TH FEBRUARY 2015 AUBURN UNIVERSITY HOTEL & CONF. CTR Dr. I. Richmond Nettey Associate Dean, College of A E, S and T (2007 – ) President, University Aviation Association (1997-1998) Trustee, Aviation Accreditation Board International (2004-2007) Panel 1: Preparing Aviation Management Graduates for Professional Employment With Airlines & Original Equipment Manufacturers (OEMs) PANEL I CHARGE: AIRLINE AND OEM PANELISTS PRESENTATION – I • Aviation Management grads seeking jobs with airlines & OEMs need backgrounds in; – – – – – marketing, revenue and cost management, finance, logistics, and a number of “soft” skills. PANEL I CHARGE: AIRLINE AND OEM PANELISTS PRESENTATION – II • Airline & OEM Panelists: – Entry-level Expectation of New Employees • They are productive early in their careers. “Taking Flight: Network Planning Overview” – Gregg Davis, General Manager, Schedule Optimization, Delta. PRESENTATION – OVERVIEW • I. GAP DEFINITION • II. GAP BRIDGING • III. FUTURE CHALLENGES I. GAP DEFINITION GAP DEFINITION – I § January 2015 GAP DEFINITION – II • Evolving Marketplace Requirements. • Stage I: Full Employment Era Specialization • Stage II: Economic Downturn Constant Learning • Stage III: Current Era Indispensable Employee – Doing a good job is not enough, you must now do so well that your employer cannot afford to lose you (Fraser, 2004) – It is impossible to know everything for success at work so Networking is needed to harness the collective knowledge and wisdom of colleagues II. GAP BRIDGING GAP BRIDGING – TEAM BASED MODEL – I • GAP BRIDGING – TEAM BASED MODEL – II • II. COLLABORATIVE APPROACH – Collaborate with at least one other person on your first peer reviewed article or proposal • • • • • Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications GAP BRIDGING – PARTNERSHIP WITH AIRLINES & OEMS – I 1. Faculty Sabbaticals with Industry • II. COLLABORATIVE APPROACH - three- or six- month programs – Collaborate with at least one other - up to one year program person on your first peer reviewed - continuous parallel programs article or proposal - •orDivided continuous serial programs workload • Shore up your weak areas 2. Industry Executive Exchange Programs • Mutual motivation and encouragement - guest professorships in aviation management • Avoidance of exhaustion and disillusionment - •mentorship of platform project-based student teams Establishes for multiple publications BRIDGING THE GAP – PARTNERSHIP WITH AIRLINES & OEMS – II 3. Airline & OEM Talent Investment and Acquisition • II. COLLABORATIVE APPROACH – - multi-year internship programs or coop education Collaborate at management least one other programs for with aviation students person on your first peer reviewed • Sophomore year to graduation article or proposal • • • • • • First-year grad school to graduation Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications GAP BRIDGING – PARTNERSHIP WITH AIRLINES & OEMS – III 4.• Airline & OEM Bridge Programs –APPROACH Aviation Management II. -COLLABORATIVE post-graduation transition programs in aviation – Collaborate at least one other management with for aviation management grads. person your functional first peerareas reviewed - rotationon through or specialization article or proposal - mentorships in functional areas and overall mentor • • • • • Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications GAP BRIDGING – PARTNERSHIP WITH AIRLINES & OEMS – IV 5. Airline, OEM & University Aviation Programs – • II. COLLABORATIVE APPROACH Partnership for Professional Development in Aviation Management – Collaborate with at least one other • Airline & OEM “ROTC” Model Programs person on your first peer reviewed • Qualified students receive full scholarships article or proposal • • • • • Divided workload • Students participate in experiential learning Shore up your weak areas • Program graduates receive a full fledged college education and and encouragement work with sponsoring Mutual motivation airline for set period of time and move on, or Avoidance of exhaustion and disillusionment establish a career with the sponsoring airline Establishes platform for multiple publications • Airlines hire well educated and trained staff FUTURE CHALLENGES FUTURE CHALLENGES • Technology • Obsolescence • Employees, Processes, etc. • Redundancy • Displacement by Innovation, Systems, Automation, etc. • Global and Market Forces • Systemic Shocks • Destructive Competition • Unfavorable Regulatory Action "Aviation is proof, that given the will, we have the capacity to achieve the impossible." ~ Captain Edward "Eddie" Rickenbacker. The End – Thank You Dr. I. Richmond Nettey Associate Dean, CAEST Kent State University Designing an Airplane for Market Position and Differentiating to Airline & Passenger Kourosh Hadi Director, Airplane Product Development Boeing Commercial Airplanes July 17, 2014 Dr. Guy M Smith AABI I/E Forum Educator Response 2015 Agenda • What we heard (July 17, 2014) – Kourosh Hadi Director, Airplane Product Development Boeing Commercial Airplanes • What we have now • What we might need … What we Heard from Director Kourosh Hadi 1) Market Outlook 2) Value Creation 2) Value Creation – Contd. 2) Value Creation – Contd. 3)Key Technology Enablers 4) Current and Future Airplane Studies 1 2 3 4) Current and Future Airplane Studies 4 What we have – (Graduate) • PhD in Aviation – User-Centered Design in Aviation • MBAA in Aviation – Strategic Marketing Management in Aviation – Business Capstone Course (Opportunity) • MS in Engineering Management – Engineering Economic Analysis • MS in Management – Production and Procurement in the Aviation and Aerospace Industry (Specialization) What we have – (Under-Graduate) • B.S. in Aviation Business Administration – Strategic Management (Opportunity) • B.S. in Engineering Technology – Engineering Technology Capstone (Opportunity) • B.S. in Technical Management – Management of Production and Operations • B.S. in Transportation – Transportation and the Environment What we have – Aviation/Aerospace (Graduate) Aviation/Aerospace (Under-Graduate) What we need … Advanced Ducted Propellers or ADPs What we need … What we need … Efficient Descent Advisor (EDA), which enables Continuous Descent Approaches, a concept that allows aircraft to fly a continuous, gliding descent at low engine power, thereby minimizing fuel consumption, environmental emissions, and noise pollution. What we need … What we need … Atmospheric Impact e.g., Contrails, Chemtrails (Cloud seeding with silver iodide crystals) Climate change and global warming Carbon Dioxide footprint What we need … Green Fuel (Alternate fuels) Expect fuel economy also to be improved by: - Fuller plane occupancy - Better air traffic control - Flying slightly more slowly - Steeper landing paths - Increased # of turboprops for shorter distances What are Your Questions and Comments? Thanks for your thoughtful participation! There are two types of collegiate aviation programs: those that are AABI accredited, and those that will be.